Royal Mail will end Saturday’s second-class letter on July 28, one of the biggest reforms of the Post Office in more than a decade.
The change was approved by OFCOM, pushing the modernization of the modern Universal Postal Service as regulators push to respond to live streaming letter volumes, rising costs and growing delivery delays. Second-class emails will now be sent on alternative working days from Monday to Friday.
Ofcom said the move could save up to £425 million in Royal Mail annually, and the fund expects the company to reinvest to improve its overall service performance.
However, in addition to the delivery restructuring, Royal Mail’s delivery targets were also downgraded. Now, only 90% of the time than the first 93% of the time, first-class letters now require contact with the recipient. For second-class letters, the target dropped from 98.5% to 95% in three days. A new rule will also require 99% of all mail to be no more than two days late.
Natalie Black, director of OFCOM Networks and Communications Group, said the changes are crucial to the survival of the postal service.
“Emergency reforms are intended to provide Royal Mail with the best opportunity for long-term sustainability. These changes are in the best interests of consumers and businesses,” she said.
“However, success now depends on Royal Mail, which effectively implements this email, communicates clearly with customers and delivers benefits through better reliability and affordability.”
In response to concerns about rising postage costs, OFCOM also confirmed that it is undergoing a review of the affordability of stamps and will conduct a public consultation in 2026.
The decision reflects a dramatic decline in the alphabetical volume. Royal Mail sent 6.6 billion letters in 2023-24, and less than 14.3 billion letters sent in 2011-22. The income from letters also collapsed, from £6.9 billion to £3.7 billion during the same period.
Royal Mail’s financial performance is in parallel, and the company reported a loss of £348 million in the 2023-24 fiscal year.
The company’s Universal Services Obligation (USO) was set in 2011 to require it to send letters in the UK at a uniform price for six days. While best-in-class letters will still be delivered Saturday, OFCOM said research shows that consumers are now prioritizing reliability and affordability over speed.
The move was conducted after a public consultation, in which businesses, consumer groups and individuals were asked about changes in USO. Ofcom said that while adapting to the changing ways people use email, people provide support for reforms to maintain service quality.
A spokesman for the Ministry of Commerce and Trade said: “The public expects good postal service to arrive nationwide in time without paying a price.
“The regulators have objected to this by the way people use postal services. We now need Royal Mail to work with the union and postal services to provide the services people expect – which includes the principle of maintaining a single Proice-Goes-goes-nyry Where.”
The price cap on second-class stamps will be kept in place.
Royal Mail now faces the challenge of stabilizing its operations and restoring customer confidence after performance declines, industrial turmoil and increased financial losses. As letter volumes that may continue to decline, the long-term future of universal postal services may depend on the promise of these reforms.
